The bridging workflow within the MTD IT module is suitable for individuals who do not require VAT, accrual basis bookkeeping, sole trader accounts, or payroll. This workflow is compatible with:

  • Sole traders (using the individual client type only)
  • UK landlords
  • Overseas landlords (please note that HMRC will only accept GBP figures)


In this workflow, you can create and manage multiple income streams from the individual client type. You do not need to create or link a sole trader (business source) to use this workflow. 

If you intend to use the bookkeeping module or have a sole trader client that you intend to continue with please follow a different workflow (Workflow 3 or Workflow 4).

Step 1: Add or Locate the Individual Client

New clients can be added in one of two ways:

  • Navigation > MTD IT > Manage > Add New Client (add the client as an individual)


  • Navigation > Capium 365 Client Portal > Add New Client (add the client as an individual)

If the client already exists in the system as an individual, proceed to Step 2.


Step 2: Grant MTD IT Module Access via the Capium 365 Client Portal

Before you proceed with this step, please ensure that the client is created as an individual.

For any existing individual who was set up in the system before MTD IT was introduced, you must manually grant them access to the MTD IT module.

  1. Navigation > Capium 365 Client Portal
  2. Search for the individual client.
  3. Select the client to open their profile.
  4. Click on Modules within the client section.
  5. Enable access to the MTD IT module.
  6. Save the changes.


Note: If you added the individual directly through the MTD IT module in Step 1, you do not need to complete this step. The access is granted automatically.


Step 3: Authorise the Client

Once the client appears in the MTD IT module, you must complete the authorisation process with HMRC.

  1. Navigation > MTD IT > Manage
  2. Locate the individual client in the list.
  3. Open the client record and click Start Authorisation.
  4. You will be redirected to the HMRC website.
  5. Complete the authorisation process on the HMRC website.
  6. Once complete, return to Capium. The client will now display an authorised status.

Note: Bulk authorisation is available, allowing accountants to authorise multiple clients in a single action rather than individually. Please refer to the separate bulk authorisation guide for instructions.



To find out more about this step please review this article. 


Step 4: Review the Client's Sources of Income

After authorisation is complete, the available sources of income will automatically populate for the client. These may include:

  • Self-employment (sole trader income)
  • UK property
  • Foreign property

If a property source is missing, it can be added manually within the software. However, if a sole trader source is missing, this must be requested directly through HMRC. Sole trader sources cannot be added by the accountant within the software.


Step 5: Create a Tax Return

  1. Navigation > MTD IT > Manage
  2. Open the individual client record.
  3. Click Add Tax Return.
  4. The system will automatically select all available sources of income for that client.
  5. Review the sources and select the Consolidated Reporting option if applicable.

Consolidated reporting can be selected if the client's income from a given source is not expected to exceed 90,000 pounds in the year. This threshold applies separately to each income stream:

  • Self-employment income: 90,000 pounds
  • UK property income: 90,000 pounds
  • Foreign property income: 90,000 pounds

The three thresholds are independent of one another. For example, if a client earns 60,000 pounds from self-employment and 60,000 pounds from UK property, they may still opt for consolidated reporting on both sources.

  1. Confirm and save. The system will automatically generate the full quarterly submission workflow, including Q1 to Q4, adjustments and allowances, and the final submission.


Step 6: Complete the Quarterly Submissions Using Bridging Files

For each quarter, a bridging file must be downloaded, completed, and re-uploaded for each income source.

  1. Navigation > MTD IT > Manage > Select Client > Submission Grid
  2. For each income source (for example, sole trader, UK property, foreign property), click on the relevant quarterly period.
  3. Click Template to download the bridging file template.
  4. Complete the template with the relevant transactions for that quarter.
  5. Upload the completed file back into the system.


Important notes on the bridging file process:

  • Each income source has its own template, but the upload process is the same for all sources.
  • The system retains the transactions uploaded in the previous quarter. When uploading Q2, only the new Q2 transactions need to be added. The Q1 transactions will already be present.
  • If a client prefers to submit on a year-to-date basis rather than per quarter, they can select View and Submit, bulk select the existing transactions, delete them, and re-upload the full year-to-date figures.
  • Any transactions not visible on the digital records screen will not be included in the submission. Only transactions shown in the cumulative summary will be submitted to HMRC.


Step 7: Review and Submit to HMRC

Once the bridging file has been uploaded for a given quarter:

  1. Navigate to the quarterly summary for the relevant income source.
  2. Review the quarterly summary (if enabled in preferences).
  3. Navigate to the Cumulative Summary page.
  4. Review the cumulative figures.
  5. Click Submit to HMRC directly from the cumulative summary page.

Repeat this process for Q2, Q3, and Q4 for each income source.



Note: The quarterly summary screen can be hidden or shown by navigating to Navigation > MTD IT > Preferences > Hide Quarterly Summary. This setting can be adjusted at any time.


Step 8: Locked Transactions After Submission

Once a quarter has been submitted, the transactions are locked and cannot be edited.

  • If a client wishes to amend a submitted quarter, they can include any corrections in the following quarter's submission.
  • If an immediate correction is required, a support ticket must be raised with the Capium support team. The technical team will re-enable the submission for that period.

Note: HMRC does not impose a restriction on the number of submissions. The locking of transactions is a Capium control to ensure submissions are made intentionally.


Step 9: Year-End Adjustments, Allowances, and Final Submission

The year-end process is the same across all four MTD IT workflows. Once all four quarterly submissions have been completed:

  1. Navigate to the adjustments and allowances section for each income source.
  2. Complete the relevant adjustments per source of income (for example, sole trader adjustments, property income adjustments).
  3. For sole trader income, a trial balance import is available. For UK property and foreign property, only amended values can be entered.
  4. Complete the other income section, which includes dividends, employment income, other expenses, losses, and deductions.
  5. Complete the year-end approval (this is mandatory).
  6. Submit the final declaration to HMRC.

Note: Quarterly approval is an optional feature. If a client requires quarterly approval, this can be enabled when creating or editing the client record. 
Navigate to Navigation > MTD IT > Manage > Edit Client > Enable Approval.